Relative to a simple moving average, the advantage of a weighted moving average is that the forecast can be more reflective of the most recent observations in a time series.Multiple ChoiceFalseTrue

Moving average method is Good for Long-term forecasting.*TrueFalse

Which of the following is a drawback of the Moving Average (MA) method of forecasting?Group of answer choicesIt requires extensive historical records.Increasing the number of periods makes it less sensitive to data change.It does not pick up trends very well.All of the above.Next

Which of the following uses a weighted average of past time series values as the forecast?Group of answer choicesThe qualitative methodExponential smoothingCorrelation analysisThe causal model

A company wants to forecast demand using the weighted moving average. If the company uses three prior yearly sales values (i.e., year 2015 = 230, year 2016 = 220, and year 2017 = 250), and we want to weight year 2015 at 30 percent, year 2016 at 30 percent, and year 2017 at 40 percent, which of the following is the weighted moving average forecast for year 2018?Group of answer choices

Which of the following statements about moving averages is not true? (a) It gives greater weight to more recent data (b) It is simpler than the method of exponential smoothing (c) It can be used to smooth a series (d) It gives equal weight to all values in the computation